Leases

12 Months Ended

Sep. 27, 2024

Leases [Abstract]

Leases

Leases

The components of lease expense (reflected in selling, general and administrative expenses) for the years ended September 27, 2024, September 29, 2023 and September 30, 2022 were as follows (in thousands):

	September 27, 2024		September 29, 2023		September 30, 2022
Lease cost
Operating lease cost	$	112,088	$	112,252	$	121,091
Variable lease cost	33,630		31,565		30,354
Sublease income	(19,002)		(17,943)		(15,179)
Total lease cost	$	126,716	$	125,874	$	136,266

Supplemental information related to the Company's leases for the years ended September 27, 2024 and September 29, 2023 was as follows (in thousands):

	September 27, 2024		September 29, 2023
Cash paid for amounts included in the measurements of lease liabilities	$	152,453	$	151,455
Right-of-use assets obtained in exchange for new operating lease liabilities	$	42,574	$	67,409
Weighted average remaining lease term - operating leases	5.6 years		6.0 years
Weighted average discount rate - operating leases	3.6%		3.3%

Total remaining lease payments under the Company's leases for each of the succeeding years is as follows (in thousands):

Fiscal Year	Operating Leases
2025	$	137,108
2026	113,034
2027	93,876
2028	77,059
2029	57,003
Thereafter	104,808
	582,888
Less Interest	(55,074)
	$	527,814

Right-of-Use and Other Long-Lived Asset Impairment

During fiscal 2023, as a result of the Company's transformation initiatives, including the changing nature of the Company's use of office space for its workforce, the Company evaluated its existing real estate lease portfolio. These initiatives resulted in the abandonment of certain leased office spaces and the establishment of a formal plan to sublease certain other leased spaces that will no longer be utilized by the Company. In connection with the Company’s actions related to these initiatives, the Company evaluated certain of its lease right-of-use assets and related property, equipment and leasehold improvements for impairment under ASC 360.

As a result of the analysis, the Company recognized impairment losses of $46.7 million and $76.1 million for the fiscal years ended September 29, 2023 and September 30, 2022, which are included in selling, general and administrative expenses in the accompanying statements of earnings. The impairment losses recorded include $40.9 million and $58.5 million related to right-of-use lease assets and $5.8 million and $17.6 million related to other long-lived assets, including property, equipment & improvements and leasehold improvements for the fiscal year ended September 29, 2023 and September 30, 2022, respectively.

The fair values for the asset groups relating to the impaired long-lived assets were estimated primarily using discounted cash flow models (income approach) with Level 3 inputs. The significant assumptions used in estimating fair value include the expected downtime prior to the commencement of future subleases, projected sublease income over the remaining lease periods and discount rates that reflect the level of risk associated with receiving future cash flows.

Leases

Leases

The components of lease expense (reflected in selling, general and administrative expenses) for the years ended September 27, 2024, September 29, 2023 and September 30, 2022 were as follows (in thousands):

	September 27, 2024		September 29, 2023		September 30, 2022
Lease cost
Operating lease cost	$	112,088	$	112,252	$	121,091
Variable lease cost	33,630		31,565		30,354
Sublease income	(19,002)		(17,943)		(15,179)
Total lease cost	$	126,716	$	125,874	$	136,266

Supplemental information related to the Company's leases for the years ended September 27, 2024 and September 29, 2023 was as follows (in thousands):

	September 27, 2024		September 29, 2023
Cash paid for amounts included in the measurements of lease liabilities	$	152,453	$	151,455
Right-of-use assets obtained in exchange for new operating lease liabilities	$	42,574	$	67,409
Weighted average remaining lease term - operating leases	5.6 years		6.0 years
Weighted average discount rate - operating leases	3.6%		3.3%

Total remaining lease payments under the Company's leases for each of the succeeding years is as follows (in thousands):

Fiscal Year	Operating Leases
2025	$	137,108
2026	113,034
2027	93,876
2028	77,059
2029	57,003
Thereafter	104,808
	582,888
Less Interest	(55,074)
	$	527,814

Right-of-Use and Other Long-Lived Asset Impairment

During fiscal 2023, as a result of the Company's transformation initiatives, including the changing nature of the Company's use of office space for its workforce, the Company evaluated its existing real estate lease portfolio. These initiatives resulted in the abandonment of certain leased office spaces and the establishment of a formal plan to sublease certain other leased spaces that will no longer be utilized by the Company. In connection with the Company’s actions related to these initiatives, the Company evaluated certain of its lease right-of-use assets and related property, equipment and leasehold improvements for impairment under ASC 360.

As a result of the analysis, the Company recognized impairment losses of $46.7 million and $76.1 million for the fiscal years ended September 29, 2023 and September 30, 2022, which are included in selling, general and administrative expenses in the accompanying statements of earnings. The impairment losses recorded include $40.9 million and $58.5 million related to right-of-use lease assets and $5.8 million and $17.6 million related to other long-lived assets, including property, equipment & improvements and leasehold improvements for the fiscal year ended September 29, 2023 and September 30, 2022, respectively.

The fair values for the asset groups relating to the impaired long-lived assets were estimated primarily using discounted cash flow models (income approach) with Level 3 inputs. The significant assumptions used in estimating fair value include the expected downtime prior to the commencement of future subleases, projected sublease income over the remaining lease periods and discount rates that reflect the level of risk associated with receiving future cash flows.